The Impact Of Human Capital On Location Selection Of Foreign Direct Investment In China

Since economic reform and opening up policies was launched in 1979, China has attracted more and more foreign direct investment. It is considered commonly that main aim of FDI is abundant and low-cost labor force besides large consumption market in China. But FDI appears obviously regional differences. There are many residual labor forces in Midwest, and the labor cost is low, but why the comparative advantage didn't attract more FDI? It is possible that human capital accumulation is very important to efficiency using of matter capital. The level of human capital of a region can directly touch the productivity, and whether assimilate the advanced technology. There are differences of labor quality in apiece regions in China. Therefore, FDI must select the region with high level human capital from its benefit considering. Then we want to investigate: How much the function of the human capital on location selection of FDI? Has it change in these years? Does it same in different regions? The research to those questions is the key content in this paper. The thesis is composed by four parts.The 1st part, chapterl the introduction. It includes: questions raise, FDI literatures summed up from the theoretical and empirical aspects, the research status quo in domestic academic field, analytical orientation, and structure arrangements of this paper.The 2nd part, chapter2, constitutes the theory frame of how human capital effect FDI location selection by using for reference present theories.The 3rd part, including chapter3, 4 and 5, is the main part of this paper. In chapter 3 , the emphasis is on the general description of the FDI inflowing process and the location characteristic. In chapter4, we review the level of human capital of apiece regions, and analyses the cause of difference. Chapter 5 is "the empirical analysis of human capital on location selection of FDI". The result has shown: Human capital effects location selection of FDI, the degree is increasing, and it is different in 3 regions.The 4th part, chapter6, on the basis of theoretical research, empirical analysis and the research above, gives some advice on how to attract more FDI.